October 24, 2011

Binary Options Trading, Will Apple Go Up or Down Today

Binary options or digital options are just like they sound, a binary bet on an event happening or not happening. For example, will Apple go Up or Down today?

To trade a binary option, you select the type of trade – a Call or Put - then enter the amount to trade. You realize profits if you cross the option price by a single tick at the end of the time period.

Unlike standard options, the risk in binary options is limited to the amount invested. And, the profit is a fixed percentage of the amount invested.

Banc De Binary and EZTrader are two brokers advertising binary options trading.